Financial details of the deal were not disclosed but is known that Morgan Stanley plans to participate on the exchange as a provider of liquidity and clearing services. In conjunction with the transaction, which is expected to close in early 2013, it will join the board of directors of the exchange holding company.
Led by Neal Brady, CEO, Eris Exchange is a futures exchange (Designated Contract Market) regulated by the CFTC. It recently launched Eris Standards, interest rate swap futures contracts with quarterly effective dates and pre-determined fixed rates. In addition, Eris Flexes offer date and rate flexibility to replicate many OTC trading structures, ranging from daily, spot-starting swaps to highly customized structures.
Morgan Stanley has initiated its integration with the Eris SwapBook(TM) electronic trading platform and will commence providing electronic and block trade liquidity for both Eris Standards and Eris Flexes in early 2013.